Adidas India is in preliminary talks with a few franchise partners to
takeover some of their individual stores or operations for cities like
Delhi, Mumbai and Bengaluru. The India unit of German-headquartered
sportswear company had, a year ago, received government approval to open
100 per cent foreign-owned stores in India, will throw open its first store
in Delhi by July, according to Dave Thomas, managing director of Adidas’s
India operation.

By 2020, the company will open 30-40 big flagship stores. However, as
finding premium real estate is a challenge in India, the company has got
into talks with its existing franchises to take over some of their large
stores. In the last couple of years, Adidas, that also operates Reebok in
India, has been consolidating its franchise partners and retail footprint.
In 2012, when the financial fraud rocked Reebok, the company had to close
500 franchise partners working for the two brands.

Also in the last two years since Thomas took over the India operations, the
company has shut down more stores than it opened. However, it is shuttering
down smaller stores and opening fewer larger stores. As such the net square
feet space it operates in India has increased.